Can I Earn Tax Credits for My New Furnace?

For many families, there usually seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a job that may be key to keeping your home comfortable through the colder months in Siloam Springs.

Buying a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Siloam Springs Heating & AC, the experts will help you find a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Siloam Springs Heating & AC a call at 479-308-8176. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.